Understanding the Strait of Hormuz: Location, Ownership, and Its Role in Global Oil Routes
The Strait of Hormuz has become a focal point of international attention due to escalating tensions between Iran and the United States. More than a mere geographic location, this waterway plays a crucial role in global oil transportation routes. Understanding its location, ownership, and significance is essential for grasping its importance to the global energy system.
Rising tensions between Iran and the United States pose not only bilateral risks but also threaten to disrupt global oil supply routes. Iran’s closure of the Strait of Hormuz would have far-reaching consequences beyond the two nations directly involved.
Iran officially closed the Strait of Hormuz to maritime traffic on 1 March 2026, with vessels reporting radio transmissions from Iran’s Revolutionary Guard stating that no ships would be permitted passage through the strait.
Location and Ownership of the Strait of Hormuz
The Strait of Hormuz is a narrow maritime passage only about 30 miles wide at its narrowest point, located between Oman’s Musandam Peninsula and Iran. It serves as the vital connector between the Persian Gulf and the Gulf of Oman.
Ownership of the Strait of Hormuz lies with Iran, which controls seven of the eight major islands within the strait. These islands have been under Iranian control since the 1970s.
According to academic sources, Iran’s ownership of the strait is linked to the establishment of UNCLOS 1982, which governs maritime law. This convention extends a nation’s territorial waters to 12 miles from its coastline. Based on the principles of island ownership in the Strait of Hormuz and this international agreement, the waterway is legally controlled by Iran, giving the country authority to monitor vessels passing through.
The Role of the Strait of Hormuz in Global Oil Routes
Despite its narrow width, the Strait of Hormuz holds paramount importance in global oil transportation. Any closure by Iran would disrupt international energy supplies, affecting not only oil-producing nations but also oil-importing countries such as Indonesia.
The strait serves as the primary route for oil tanker traffic, with vessels transporting approximately one-fifth of the world’s oil supply. In total, tanker ships carry around 19 million barrels of crude oil through the strait daily.
According to data from the US Energy Information Administration (EIA), oil supplies passing through this narrow passage reached 21.4 million barrels daily during 2022–2023. However, volumes have gradually declined in 2024–2025 following escalating conflicts in the Middle East.
Optimal Route for Global Oil Distribution
The Strait of Hormuz represents the most efficient route for large-scale maritime oil transportation due to its geographical characteristics, offering sufficient depth and width to accommodate large tanker vessels. Oil-producing nations such as Kuwait and Saudi Arabia rely on this passage to export their crude oil. With limited alternative routes available for oil transportation, the strait remains indispensable.
Closure of the Strait of Hormuz would force oil-producing nations to seek alternative routes, which are typically longer and more circuitous. This would result in shipping delays and increased transportation costs, ultimately driving up global oil prices.
The Strait of Hormuz therefore plays a vital role in maintaining global oil supply and, indirectly, in stabilising international crude oil prices. Its strategic importance cannot be overstated in the context of global energy security and economic stability.